We audited the Housing Authority of the City of Shreveport (Authority) as part of our annual audit plan to review American Recovery and Reinvestment Act of 2009 (Recovery Act) funds. Our objective was to determine whether obligations the Authority made between January 30 and March 17, 2010, were appropriate, prudent, eligible, and supported and whether procurements were made in accordance with requirements. We determined that the Authority mismanaged its Recovery Act funds by entering into imprudent contracts to meet the March 17, 2010 obligation deadline. In addition, the Authority could not provide assurance that the contracts were properly awarded or managed. By selecting an activity for expediency purposes instead of prioritizing capital work in its best interest, the Authority inefficiently and ineffectively managed more than $1.5 million in Recovery Act funding. We recommended that HUD require the Authority to deobligate more than $1.1 million in Recovery Act funds and that it recapture and rescind the deobligated funds and deposit those funds with the U. S. Treasury in accordance with the Recovery Act, as amended.